What's happening
This bill establishes the North Shore Water Authority in Nassau County as a public entity to manage, acquire, and operate local water supply systems.
Why it matters
Public control over water resources. By transferring management from a private utility to a public authority, the bill aims to provide more stable rates, improved transparency, and better long-term planning for water quality and supply—issues of particular importance given the area’s reliance on a sole-source aquifer.
Broad and flexible authority powers. The new North Shore Water Authority would have significant powers, including issuing bonds, acquiring property (including by eminent domain), setting rates, making rules, and entering into contracts. This could enable rapid infrastructure upgrades or expansion, but also places major financial and policy decisions in the hands of the new authority’s board.
Community input and accountability. The bill requires public forums before any purchase or condemnation of the existing private water system, and authorizes nonbinding referenda among affected voters. This gives residents some voice in major decisions about their water provider, though ultimate authority rests with the board.
Fiscal and legal autonomy. The authority is exempt from most taxes and fees, can issue debt without state or municipal backing, and is largely insulated from state regulatory oversight (e.g., the Public Service Commission). This structure is designed to protect the authority’s finances and bondholders, but could limit oversight or recourse for ratepayers or local governments.
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Who cares
Headline styles
Create North Shore Water Authority
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to corporations, authorities and commissions
- Delivered to assembly
- Passed senateVote 58–2
- Ordered to third reading cal.891
- Reported and committed to rules
- Print number 6491b
- Amend and recommit to corporations, authorities and commissions
- Print number 6491a
- Amend and recommit to corporations, authorities and commissions
- Referred to corporations, authorities and commissions
- Referred to rules
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Create North Shore Water Authority
In Assembly Committee · Corporations, Authorities And Commissions · Sponsor Charles Lavine
Full text
20 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6491--B
2019-2020 Regular Sessions
IN SENATE
June 13, 2019
Introduced by Sens. GAUGHRAN, COMRIE -- read twice and ordered printed, and when printed to be committed to the Committee on Rules -- recommitted to the Committee on Corporations, Authorities and Commissions in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the public authorities law, in relation to establishing the North Shore water authority
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Legislative findings. The legislature hereby finds that the groundwater supply system presently operated by a private utility in the northwest portion of the Nassau county servicing the residents of the village of Sea Cliff, and portions of the village of Old Brookville, village of Roslyn Harbor, and residents in the unincorporated hamlets of Glenwood Landing, Glen Head and the city of Glen Cove, is fragile and subject to episodic deficiencies of varying magnitude including service disruptions and drastic price variations to residents serviced by the existing private water company. The groundwater supply requires better management of its entire reserve both within and outside the water utility supply area as well as long range planning to provide protection of important watershed areas, water conservation, and prevention from contamination and salt water intrusion. Since the potable water for the northern portion of the North Shore peninsula is derived from an aquifer which is the sole source of water for all of Long Island, the issues of contamination and conservation are of statewide concern. The problems of salt water intrusion facing the North Shore peninsula, face many other peninsulas on Long Island and many of the barrier islands. It is hoped that the authority created by this act will not only protect, preserve and enhance the quality and quantity of the water within its supply
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13297-06-0
S. 6491--B 2
area, but that it will also serve as a model and as a leader in fostering cooperation with other water suppliers to better manage, conserve and protect the groundwater within and outside its supply area.
§ 2. Article 5 of the public authorities law is amended by adding a new title 5-a to read as follows:
TITLE 5-A
NORTH SHORE WATER AUTHORITY Section 1114-a. Short title.
1114-b. Definitions.
1114-c. Water authority of North Shore district.
1114-d. Water authority of North Shore.
1114-e. Powers of the authority.
1114-f. Transfer of officers and employees.
1114-g. Bonds of the authority.
1114-h. Remedies of bondholders.
1114-i. State and municipalities not liable on authority bonds.
1114-j. Moneys of the authority.
1114-k. Bonds; legal investments for fiduciaries.
1114-l. Agreement with the state.
1114-m. Exemption from taxes, assessments and certain fees;
payments in lieu of taxes.
1114-n. Actions against the authority.
1114-o. Conflicts of interest of members of the board of direc-
tors and officers and employees of the authority.
1114-p. Construction and purchase contracts.
1114-q. Separability clause.
1114-r. Effect of inconsistent provisions.
1114-s. Acquisition by eminent domain.
§ 1114-a. Short title. This title may be cited as the "Water Authority of North Shore Act".
§ 1114-b. Definitions. As used or referred to in this title, unless a different meaning clearly appears from the context:
1. "Authority" shall mean the corporation created by section eleven hundred fourteen-d of this title.
2. "Board of directors" shall mean the governing board of the authority.
3. "Bonds" shall mean the bonds, notes or other evidences of indebtedness issued by the authority pursuant to this title.
4. "Calendar year" shall mean the twelve month period from January first through December thirty-first.
5. "Chief executive officer" when referring to a municipality shall mean the chief elected official of such municipality and, when referring to the authority, shall mean the chairperson of the authority.
6. "Civil service commission" shall mean the civil service commission of the county of Nassau.
7. "Comptroller" shall mean the comptroller of the state of New York.
8. "Construction" shall mean the negotiation, acquisition, erection, building, alteration, improvement, testing, increase, enlargement, extension, reconstruction, interconnection, renovation or rehabilitation of a water facility as defined in this section; the inspection and supervision thereof; and the engineering, architectural, legal, appraisal, fiscal, economic and environmental investigations, services and studies, surveys, designs, plans, working drawings, specifications, procedures and other actions incidental thereto.
9. "Costs", as applied to any project, shall include the cost of construction, the cost of the acquisition of all property, including
S. 6491--B 3
both real, personal and mixed, the cost of demolishing, removing or relocating any buildings or structures on lands so acquired including the cost of acquiring any land to which such buildings or structures may be moved or relocated, the cost of all systems, facilities, machinery, apparatus and equipment, financing charges and bond discount, interest to the extent not paid or provided for from revenues or other sources, the cost of engineering and architectural surveys, plans and specifications, bond insurance, bond credit enhancement arrangements, other expenses necessary or incidental to the construction of such project and the financing of the construction thereof, including the cost of legal and financial advices and credit arrangements with banks or other financial institutions, the amount authorized in the resolution of the authority providing for the issuance of bonds to be paid into any reserve or special fund from the proceeds of such bonds and the financing of the placing of any project in operation, including the reimbursement to any municipality, state agency, the state, the United States government, or any other person for expenditures made by them that would be costs of the project hereunder, notwithstanding the fact that such expenditures may have been incurred prior to the effective date of this title.
10. "County" shall mean the county of Nassau.
11. "Distribution system" shall mean the water facility or facilities employed to deliver water from a transmission facility, or where there is no transmission facility, from a supply facility, to the ultimate consumers of water.
12. "District" shall mean the water authority of North Shore water district created by section eleven hundred fourteen-c of this title.
13. "Governing body" shall mean:
(a) in the case of a city, county, town or village or district corporation, the finance board as such term is defined in the local finance law; or
(b) in the case of a public benefit corporation, the members thereof.
14. "Members" shall mean the members of the board of directors.
15. "Municipality" shall mean any city, county, town, village or county or town acting on behalf of an improvement district.
16."Real property" shall mean lands, structures, franchises and interests in land, waters, lands under water, groundwater riparian rights and air rights and any and all things and rights customarily included within the term "real property" and includes not only fee simple absolute, but also any and all lesser interests including, but not limited to, easements, rights of way, uses, leases, licenses and all other incorporeal hereditaments and every estate, interest or right, legal or equitable, including terms for years and liens thereon by way of judgments, mortgages or otherwise.
17. "State sanitary code" shall mean regulations adopted pursuant to section two hundred twenty-five of the public health law.
18. "State" shall mean state of New York.
19. "State agency" shall mean any state office, public benefit corporation, department, board, commission, bureau or division, or other agency or instrumentality of the state.
20. "Supply facility" shall mean a water facility employed to make groundwater or surface water available for delivery into a transmission facility or distribution system.
21. "System revenues" shall mean all rates, rents, fees, charges, payments and other income and receipts derived from users of the authority without limiting the generality of the foregoing, investment
S. 6491--B 4
proceeds and proceeds of insurance, condemnation, sales or other dispositions of assets, together with all federal, state or municipal aid as well as any other income derived from the operation of the water facility of the authority.
22. "Transmission facility" shall mean a water facility used to carry water from a supply facility to a distribution system.
23. "Treasurer" shall mean the treasurer of the authority.
24. "Water facility" or "water facilities" shall mean any plants, structures and other real and personal property acquired, rehabilitated or constructed for the purpose of supplying, transmitting, distributing or treating water, including but not limited to surface or groundwater reservoirs, basins, dams, canals, aqueducts, standpipes, conduits, pipelines, mains, pumping stations, water distribution systems, compensating reservoirs, intake stations, waterworks or sources of water supply, wells, purification or filtration plants or other treatment plants and works, connections, water meters, rights of flowage or diversion and other plants, structures, equipment, towers, conveyances, real or personal property or rights therein and appurtenances thereto necessary or useful and convenient for the accumulation, supply, transmission, treatment or distribution of water.
25. "Water project" shall mean any water facility, including the planning, development, financing or construction thereof.
26. "Watershed rules" shall mean the rules and regulations made by the department of health pursuant to section eleven hundred of the public health law.
§ 1114-c. Water authority of North Shore district. There is hereby created a district to be known as the "water authority of North Shore district" which shall be defined as all that portion of Nassau county being serviced by the New York American water service corporation as its sea cliff operations district as of January first, two thousand eighteen and lying north of the area serviced by Jericho water district.
§ 1114-d. Water authority of North Shore. 1. A corporation known as "water authority of North Shore" is hereby created for the purposes and charged with the duties and having the powers provided in this title. The authority shall be a corporate governmental agency constituting a public benefit corporation and shall be a "public district" for the purposes of section eighty-nine of the public service law. The authority shall be governed by a board of directors consisting of six members. The governing boards of the villages of Old Brookville, Sea Cliff, Roslyn Harbor, and the City of Glen Cove shall each appoint one member. The governing board of the Town of Oyster Bay shall appoint two members representing the residents of the unincorporated hamlets of Glen Head and Glenwood Landing who are serviced by the water authority of North Shore. Each member shall serve for a period of two years. Each chief executive officer shall file with the secretary of state a certificate of appointment or reappointment of any member appointed or reappointed by such chief executive within thirty days of the appointment or reappointment. Members shall receive no compensation for their services but shall be entitled to reimbursement of their necessary expenses, including traveling expenses, incurred in the discharge of their duties. Nothing in this section shall be construed as preventing a chief executive officer of a municipality from appointing himself or herself to be a member of the board of directors.
2. If the authority decides to enter into a contract to purchase or otherwise acquire an interest in the New York American water service corporation or to initiate a condemnation proceeding pursuant to the
S. 6491--B 5
eminent domain procedure law for the area it services within the water authority of North Shore district, prior to entering into any contract to purchase or otherwise acquire an interest in the New York American water service corporation or the initiation of any condemnation proceeding by the authority pursuant to the eminent domain procedure law for the area it services within the water authority of North Shore district, the authority shall provide ratepayers within the area serviced by the New York American water service corporation and the public with public forums for the expression and discussion of views regarding such purchase, acquisition or condemnation of the New York American water service corporation. The authority shall hold at least one forum in each of the towns of North Hempstead, Oyster Bay, and city of Glen Cove within the portions of the towns of North Hempstead and Oyster Bay and the city of Glen Cove serviced by the New York American water service corporation.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the public authorities law, in relation to establishing the North Shore water authority
Purpose or general idea of bill
To provide authorization and statutory framework for the establishment of a North Shore Water Authority to operate in the service area present- ly operated by a private utility in the northwest portion of Nassau County, servicing the residents of the Village of Sea Cliff, and portions of the village of Old Brookville, Village of Roslyn Harbor, and residents in the unincorporated hamlets of Glenwood Landing, Glen Head and the City of Glen Cove.
Summary of specific provisions
Section One contains the Legislative Findings.
Section Two amends the Public Service Law by adding a new Title 5-A, entitled the North Shore Water Authority. Title 5-A contains nineteen sections, which establish the statutory scheme for the Water Authority. These sections are as follows:
1114-a: Provides that the act may be cited as the "Water Authority of North Shore Act"
1114-b:Contains pertinent definitions.
1114-c: Provides the water district boundaries.
1114-d: Establishes the public benefit corporate structure and provides the appointment process for the board of directors, public hearing requirements before the purchase or condemnation of property within the service area, nonbinding referendum requirements, and weighting of the votes cast by the board of directors. Further, this section contains the duties of the Board and the Officers appointed thereto.
1114-e: Establishes the powers of the authority.
1114-f: Provides that public officers and employees may be transferred to the authority upon consent of the transferring employer.
1114-g: Authorizes the authority to issue bonds.
1114-h: Specifies the remedies of bondholders in the event that the authority defaults on a bond and provides that actions relating to default on bonds shall be adjudicated in Nassau County.
1114-i: Provides that the state and municipalities thereof are not liable on bonds issued by the authority.
1114-j: Governs monies of the authority.
1114-k: Provides that the bonds of the authority shall be considered securities for investment and deposit. 1114-1: Limits alterations by the state impacting bonds.
1114-m: Exempts the authority from taxes and special levies or assess- ments and allows for the establishment of PILOTS upon consent.
1114-n: Relates to limitations on actions against the authority.
1114-o: Governs conflicts of interest of members of the board of direc- tors and officers and employees of the authority.
1114-p: Provides that contracts of the authority shall be let pursuant to the Wicks Law.
1114-q: Contains a separability clause. 1114-r: Governs inconsistent provisions.
1114-t-Governs acquisition by the authority via eminent domain.
Justification
The ratepayers in the villages of Sea Cliff, Old Brookville, Roslyn Harbor and the hamlets of Glenwood Landing and Glen Head are currently serviced by American Water, a private water utility. Unfortunately, a variety of factors has led to exorbitant water rates for some customers and disruptions in service. This legislation would authorize, at local option, the establishment of a North Shore Water Authority. Upon forma- tion, the Authority would be authorized to take over the assets and functions currently provided by the private utility.
Public water authorities have been successful in protecting, preserving and enhancing the quality and quantity of water on Long Island. The formation of a public water authority should be an option for the impacted localities to consider when evaluating possible remedies to address the issues that have arisen with the private water utility.
Prior legislative history
New Bill.
Fiscal implications
None to the State.
Effective date
This act shall take effect on the ninetieth day after it shall have become law.
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